Garden Products Market Research Report 2010 from MTW Research
The legacy of the recession lingers on for suppliers and retailers of garden products, though sales growth in 2009 highlighted a healthy underlying resilience in the market, despite ongoing problems relating to low profitability. Demand is forecast to experience moderate rises in both volume and value terms this year across most key product sectors in the garden products market, as positive key market influences continue to outweigh those negative issues which are currently preventing above inflation growth.
2010 growth is forecast at around 2% for the garden products market, though the report points to the threat of substitutes driving price competition in the lower-mid market sectors. MTW’s director, Mark Waddy describes, “A growing level of pricing pressure, with imports now accounting for more than 50% of the garden products market. Its clear that price deflation is now a serious threat to industry profitability in 2010.”
However, the report goes on to identify a number of key market opportunities and reasons to be optimistic, particularly post 2010 as speculative housebuilding, growth in disposable incomes, rising population age and a host of other issues underpin volume demand - stimulating value growth across most product sectors.
Sales of garden furniture and the barbecue market are set to experience strong growth in 2010, supported by product development and a number of social trends which should boost volume demand in the short term. With current forecasts of a warmer 2010, courtesy of El Nino, the rise in the use of the garden as a place for entertaining should continue in 2010 providing stimulus for a wide range of complementary garden products.
The garden timber market and hard landscaping products lost around £150 million in sales during the recession, according to the 300 page report, as householders postponed garden refurbishment projects in light of the fragile economic landscape in 2008 and 2009. MTW state that as consumer confidence gathers strength later this year, an element of ‘pent-up’ demand should offer good volume growth opportunities for suppliers active in sectors such as the decking market, with porous paving also offering added value opportunities.
Due acknowledgement is also given to the ‘Grow Your Own’ trend by the report, with MTW identifying healthy rates of growth in the seeds market due to consumers not only seeking to save money, but also becoming more adventurous in their choice of vegetables and salads. Kohlrabi & fennel are just 2 varieties identified as growing in popularity as consumers become more knowledgeable and sophisticated in the home grown sector. Whether the ‘GYO’ is more of a fad than a trend remains to be seen, though with uncertainty regarding the UK’s economic health remaining, this sector of the horticultural market is set to remain buoyant in the short term at least.
MTW also examine sales for 250 manufacturers and retailers, analyse future prospects for each product sector to 2014 and industry trends in the garden centres market. The report is available to purchase now from MTW Research for GBP 565 from http://www.marketresearchreports.co.uk or by calling 08456 524324
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